Today, Pay-TV operators lobbied for changes in broadcasting rules in response to the threat from the Internet. In particular, they were concerned about anti-siphoning lists that prevented Pay-TV operators from television sports events. The example of only 3 live events shown in teh recent Winter Olympics is a case in point.
But it is hard to see what this has to do with the Internet. The Internet may attract attention and also compete with television but restrictions that protect free-to-air TV have little to do with that. Instead, it is those restrictions that are the problem. Put simply, those laws give broadcast TV operators veto power. They could television a few hours of Olympics a night and block Pay-TV from televising the rest. Moreover, on-line options such as Google TV were not available to Australian viewers. So much for the threat from the Internet.
So forget basing arguments on potential threats, the argument resonates now: restrictions that give broadcast TV a leg up are not a good idea and have real costs if abused. If programming is not available as a result of them, then those rules are hardly working to provide free options for consumers.
Of course, another possibility would be for Pay-TV operators to offer free channels themselves. They could install boxes for free across Australia and then become a new free broadcasting choice. I guess, however, that the investment costs for that would be prohibitive. But if they are really threatened perhaps it is worth considering.